What is UGC and why is it important?

If you’ve been on social media and primarily TikTok, chances are you have come across user-generated content, or UGC, as it’s affectionately known by UGC Creators. It’s characterized by its authenticity and appeal to consumers. However, we’ve noticed that many brands, startups, and legacy companies are not tapping into the power of user-generated content and what it can do for their brand and their brand’s story. Kapshure makes it easy for User Generated Content (UGC) Creators to sell their short-form video content and services. Creators can set up a digital shop in minutes. Brands can purchase video content and services in a few clicks.

 

 

 

What is UGC and why is it important?

What is UGC? by Kapshure, Inc.

 

What does UGC stand for?

User-generated content, or UGC as it is commonly known, is not new, but the term has emerged since the rise of short-form video content on TikTik skyrocketed. UGC is content created by everyday consumers who provide an honest, authentic, and real-world review of a product, service, or experience. UGC genuinely connects with consumers through short-form videos, images, product reviews, demos, testimonials, and experiences, that highlight a user’s first-hand experience with the product or service. UGC is like sharing your favorite products, places to travel, apps to use, brands to shop, stores, places to stay, restaurants, tech products, and more; with a billion of your besties on social media. 

Why is UGC Important?

UGC is important for brands because it resonates with consumers; in a way that traditional ads never could. With video being the default language of the Internet, UGC in the form of short-form videos can take a product from the research phase to a cart’s checkout in seconds. UGC is a gateway for legacy brands to connect with the ever-evolving Gen-Z audience. Who prefers to crowdsource product opinions. Also, consumers are 2.4x more likely to view UGC as authentic. User-generated content is an opportunity for brands to build trust and authenticity with their audience.

 

Why is UGC important for Brands?

According to a survey conducted among consumers in the United States in April 2022, when asked how they would react if a brand incorporated user-generated content (UGC) into marketing initiatives, 84 percent of respondents said they would be more likely to trust the brand.

The increasing use of mobile social video apps has fueled UGC. User-generated short clips are immensely popular content - platforms like TikTok, Snapchat, or Instagram Stories have enabled users to record short clips that can immediately be shared with friends and followers across social media platforms.

Image by Digital Information World

User-generated content beats the conventional ads in building brand loyalty and customer engagement

Brands can leverage different types of user-generated content to stay relevant in the social media age. User-generated content is a type of marketing strategy that is growing in popularity. Brands are now relying on users to create authentic content for them. Rather than just paying influencers for ads or hiring a creative team to produce original content. UGC Creators provide social proof and they build brand awareness and product engagement. UGC Creators have been proven to generate higher ROIs and ROAS for brands. 

 

What is User-Generated Content and Why Should Brands Care?

Brands are starting to take notice of the power of UGC and its potential impact on their business.

Brands should care about UGC because it's an opportunity for them to engage with their customers in a personal way. It also gives them insight into what their customers want and need.

 

How To Create A User-Generated Content Campaign That Will Increase Your Brand's Visibility And Reach

A user-generated content campaign is a great way to increase your brand's visibility and reach. It is a form of social media marketing that involves the brand working with UGC Creators to create content that shares their thoughts and personal experiences with a product or service. 

This type of campaign can be very beneficial for small businesses because they can cut down on the costs of developing their own content while still benefiting from increased exposure.

 

Why User Generated Content is Even More Important Now That The Algorithm Rules the World 

The infamous algorithm on social media sites plays a huge role in what's driving the popularity and push for user-generated content. The algorithm on social media sites has changed how businesses create marketing strategies. The algorithm favors more videos and pictures than text posts, which means marketers need to find new ways to connect with their customers. User-generated content provides a unique perspective and creates opportunities for businesses to connect; with their customers in meaningful ways.

 

What is an example of user-generated content?

Examples of Successful UGC Campaigns in Influencer Marketing

TikTok Spark Ad Example 1:

Here’s an example of how creator @bitcoin_papi leveraged her content to land a brand sponsorship.

Spoiler Alert: The creator used storytelling to hook the audience.

   

Notice in this UGC example the creator has no product in her hand. She uses storytelling to share her experiences with the product that people can relate to. 

What does this do? What is the main role of UGC?

This user-generated content is a great example of the power of UGC along with storytelling that resonates with consumers.

•  It evokes emotion + curiosity
• Perhaps, you’ve been searching for the perfect scent.
•  If you’ve never tried Glossier You, now you may be wondering, What does it smell like?
• You might even purchase it online, just from the way she told the story. 

Here’s what this UGC did for this consumer.
 

 

And here’s what this TikTok UGC Ad did for this consumer. 
 

 

Now, what does TikTok Spark Ads have to do with this?

Here is the recipe for how User-Generated Content + Brand Sponsorship = TikTok Spark Ad

• The creator created something people wanted. Authentic Quality Content = UGC
• The creator tagged Glossier in her video post
• The creator didn’t use any music or sounds that could eliminate the content from being used as an Ad. 

The results

Here’s what happened next with @bitcoin_papi user-generated content TikTok video.

• Her content started gaining traction.
• People began tagging Glossier in the comments and telling them to “sponsor her.”
• Glossier even commented

 

Glossier listened and sponsored this creator’s content as a TikTok Spark Ad

The Stats

Here are the stats on how TikTok creator @bitcoin_papi video performed as a TikTok Spark Ad.

• The video now has 14.1M views
• 560k likes 
• 3600+ comments,
•  91k saves, 
• 4K+ shares
• And the number of likes within the comment section have exploded
• Also, in case you’re wondering, this creator has 4776 Followers

 

TikTok Spark Ad Example 2:

In this UGC example TikTok creator @ashleyleiz used a product by Versed called Firm Ground Retinol Body Lotion to demonstrate before and after shots to show the results. She also shared her honest review in the video description.

 

The Stats

Here are the stats on how TikTok creator @ashleyleiz video content performed as a TikTok Spark Ad.

• The video now has 2.8M views
• 80.4k likes 
• 256 comments,
• 15.1k saves, 
• 717 shares
• Also, in case you’re wondering, this creator has 8622 Followers

These are just a few examples of how user-generated content, in the form of short-form videos, creates Network Effects when paired with TikTok Spark Ads. 

 

What UGC Creators Might Not Know About TIKTOK Spark Ads!

 

 

So, what is UGC and why is it important?

Here is our list of takeaways if you are a UGC creator or a brand researching the benefits of user-generated content, and how it can level up brand awareness and foster increased engagement across social platforms. 
 

Our 13 Reasons Why You Should be using UGC in your Brand Marketing Strategy on TikTok:

• Video is the default language of the Internet and short-form video content is king.

• UGC genuinely connects with consumers through short-form videos, images, product reviews, demos, testimonials, and experiences.

• User generated content is a great way to build trust and authenticity with your audience.

• Brands can leverage different types of user-generated content to stay relevant in the social media age. 

• UGC Creators provide social proof and build your brand’s awareness and product engagement. 

• Brands should care about UGC because it's an opportunity for them to engage with their customers in a personal way.

• A user-generated content campaign is a great way to increase your brand's visibility and reach. 

• The algorithm on social media sites is a huge part of what's driving the popularity of user generated content.

• UGC can produce results higher than influencer marketing with better ROIs and ROAS

• User-Generated Content + Brand Sponsorship = TikTok Spark Ads that increase engagement, brand/product awareness, and network effects

• The endless examples of UGC signals to brands and creators the power of UGC, and what it can accomplish. 

• UGC Creators create content that truly resonates with themselves as a consumer first. 

• Chances are UGC will resonate with your audience too.